Japan and South Korea Agree to Advance Discussion on EPA

Mr. Akihiro Ohata, Minister of Ministry of Economy, Trade and Industry, said in attended scheduled press conference on Tuesday that he met South Korea’s cabinet member in Hanoi, Vietnam last week and agreed in advancement of talks on EPA (Economic Partnership Agreement) between two countries. Japanese steel export may increase to South Korea when two countries conclude EPA which includes steel products. Japan is also moving to participate in Trans-Pacific Partnership (TTP). Japanese steel industry expects for improvement of export circumstances through EPA and TTP.

Japanese steel export to South Korea was 26 million tonnes in fiscal 2009 ended in March 2010. South Korean carbon steel export to Japan was 1.76 million tonnes. Japanese steel export condition could improve by tariff abolition under EPA.

Some concerns say EPA with other countries or TPP is more important for Japanese industry than EPA with South Korea, especially EPA with the countries where Japan and South Korea are in trade competitions. Japanese government reached EPA agreement with India on October 25 and trade tax on most steel products will become zero within 5 years. Japanese government will fix EPA basic plan this week and advances EPA to integrate trade competitive conditions with other countries.

Mr. Ohata said discussions on TPP are insufficient between Japanese government and the public at present. Japanese government is expected to announce intention to participate in TPP at Asia Pacific Economy Conferences held in Yokohama on November 13- 14 but the government is in difficult processes with domestic industries such as agriculture.